Cambodia’s economic activity continues to expand, led bysolid growth in garment exports and strong constructionactivity. Real growth is projected to reach 7.0 percent in2016, in line with the resilient performance across theregion. The economy is projected...
See More +Cambodia’s economic activity continues to expand, led bysolid growth in garment exports and strong constructionactivity. Real growth is projected to reach 7.0 percent in2016, in line with the resilient performance across theregion. The economy is projected to sustain its high growthtrajectory, expanding at 6.9 percent in both 2017 and2018 propelled by exports and government consumption.The agriculture sector is expected to improve slightly due tobetter weather conditions this year and to expand graduallyin the near term, thanks to concerted efforts by allstakeholders, in particular the public sector. Risks,however, include potential uncertainty related to communeand general elections in 2017 and 2018, respectively, asharp decline in the construction and real estate sector,fallout from a rise in US interest rates, regional tensionsand slower global growth. Although severe drought causedby El Niño is a challenge, the downward trend of povertyis expected to continue over the next few years, albeit drivenmainly by the garment, construction, and services sectors.The agriculture sector, which was the main driver of povertyreduction in the past has recently eased.
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